Bitcoin broke through $50000 for the first time! Why do people love and hate each other in the past 12 years?

Bitcoin’s trading price broke through the $50000 barrier for the first time today. The world’s most famous digital currency has been in dispute for 12 years since it came out, and the currency value fluctuates violently. However, the increasing acceptance of the business community has brought support to the recent vigorous rise of bitcoin. Musk encouraged the buying boom, bitcoin broke through the $50000 mark. According to the quotation of coindesk, at about 7:30 a.m. EDT, the trading price of bitcoin exceeded $50000, and the currency value doubled in less than two months. The total market value of bitcoin reached 940 billion US dollars. Bitcoin rose 5% in a single day, then pulled back from its peak to below $50000. In the eyes of authorities and critics such as Nouriel Roubini, an economist, bitcoin has often been reduced to speculation rather than a reliable asset. However, the increasing acceptance of large enterprises has made investors like Tek more confident in the long run. With bitcoin soaring, from PayPal to MasterCard to bny Mellon, electronic payment and traditional financial institutions have announced in recent weeks that they will support digital currency. Tesla, a big electric car maker, announced last week that it would buy bitcoin for $1.5 billion and would accept payment from customers in bitcoin. Tesla’s chief executive, musk, has always been in love with digital currency, and he voted for bitcoin with his company’s funds, prompting a stronger buying boom. The value of the currency fluctuates sharply and is easy to become a crime corner. Bitcoin is loved and hated. But the lesson of bitcoin crash is still fresh in our memory. Bitcoin trading price was close to $20000 in 2017, the bubble burst the next year, and the currency value evaporated by more than 80%. Supporters of bitcoin believe that the bubble more than three years ago was the result of speculation by retail investors, and this wave of bull market is mainly driven by investors. Bitcoin skeptics insist that the rally reflects the speculative mentality of investors in pursuit of huge rewards in a period of loose monetary policy. Bitcoin was launched in 2008 and started in January 2009. This kind of cryptocurrency can be “mined” by a special computer. In order to avoid inflation, the number is limited to 21 million. The original idea of bitcoin is to give play to the concept of decentralization and create a digital currency not issued by the central bank, which has won the support of many programmers and anarchists. After bitcoin became popular, there were many scandals, such as fraud and hacker theft. In February 2014, the Tokyo based bitcoin exchange, Mt. GOx, closed down after hacker attacks, and then filed for bankruptcy protection, revealing the security risks of digital currency. Another attribute of bitcoin is that the value of the currency fluctuates sharply, and there is no circuit breaker mechanism for the stock market to calm investors down a little. Although bitcoin rose 3.5 times in 2020, the trading price of bitcoin plummeted 64% from February to march in the same year, which was twice as much as that of US stocks, as the economy was hit hard by covid-19 (new coronavirus pneumonia). The lack of supervision of digital currency has also led to a criminal corner. According to the chainalysis report, the cryptocurrency used in illegal activities around the world will be worth about $10 billion in 2020. Christine Lagarde, President of the European Central Bank (ECB), recently took money laundering as an example and repeatedly called for strengthening the management of cryptocurrencies.

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